It's not debt if it causes inflation; it's money, or at least it is cash.
Debt doesn't cause inflation, in the private sector, unless there is an implied threat of a bailout from the Government involving printing more notes.
What differentiates money and cash? If money is what we desire, then cash might be something different, it might even be IOUs for money. We don't want cash, we want money so cash might be symbolic of money. Cash and banknotes aren't money, they are cash which is different because it's only a trick.
Tuesday, 23 March 2010
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